General Motors Chairman and CEO Mary Barra toured one of the company’s Warren, Michigan facilities on April 1, 2020, where Level 1 face masks are manufactured.
General Motors CEO Mary Barra believes the automaker’s stock has a long runway to go as the automaker focuses on all-electric vehicles.
After a decade of sluggish growth in the automaker’s stock, GM’s shares are up 36% this year after numerous new products were announced, including plans to sell auto insurance and move the full line of products to electric vehicles by 2035. Barra expects this uptrend to continue.
“I think as the market begins to see all of the assets and resources that General Motors brings to this transformation, we are probably just beginning the move in GM stock,” she said during an online discussion Thursday for The event of the Economic Club of New Yorks Women in Business.
Barra said it’s not just about GM’s “electric vehicle convergence, it’s also about improvement.” She used GM’s new BrightDrop EV retail store as an example. The new unit is expected to deliver electric vehicles as well as logistic services and other products such as drive assisted electric pallets to commercial customers.
“We’re not just changing the propulsion system, we’re saying, ‘How can we improve the overall experience?'” She said, citing a pilot delivery program between BrightDrop and FedEx that found “significant productivity gains”.
Pam Fletcher, vice president of global innovation, has called BrightDrop a “one-stop-shop ecosystem” for commercial customers. The first product will be the range, followed by a new all-electric van called the EV600 by the end of this year.
The commercial market is expected to be a major growth area for electric vehicles. Other start-up automakers like Amazon-backed Rivian, as well as older automakers like Ford Motor and Daimler, have announced plans to enter the segment. GM estimates that the combined market opportunity for package, grocery delivery and reverse logistics in the US will exceed $ 850 billion by 2025.
Barra attended a panel discussion with Jane Fraser, CEO of Citigroup, on Thursday, moderated by CNBC’s Sara Eisen.